Snap up a bargain! Experts say 2009 may be the perfect time to buy your dream home but do not expect a swift recovery in housing prices.
John Kolenda Loan Market Group executive director said that low interest rates and subdued property prices combined with Government initiatives have made entering the property market easier, particularly for first home buyers.
Mr. Kolenda went on further to say that despite the global economic uncertainty, the conditions in Australia for those seeking to enter the property market were ideal.
Mortgage holders were likely to benefit from the lowest variable interest rates ever offered in Australia as the cash rate could fall to 2.5 per cent.
The Australian Bureau of Statistics said that house prices had been sluggish across the eight capital cities in the past two quarters down by 1.8 per cent in the September quarter. This followed a 0.2 per cent drop in the June quarter.
Craig James CommSec's chief economist stated that property prices would rise moderately this year due to a housing shortage. Mr. James further reiterated that the national housing prices were tipped to grow by 3 to 5 per cent over 2009 with major variations across the regions.
Mr. Kolenda felt that the rise in the grant had stimulated interest in the lower half of the housing market and that these concessions would continue for the first half of 2009, while one would expect to see home mortgage rates fall still further, encouraging a variety of buyers, including Australians returning from overseas.
The Housing Industry Association (HIA) forecasted a recovery in the property market in the latter half of 2009.